About the Video
Here are 5 tips every Sole Proprietors in Malaysia need to know while filing your Borang B to get the most out of your business! I’ve also included some of the learnings through my engagement with a licensed accountant.
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⬇️Timestamps:
0:00 → Intro
0:33 → Tip 1 – Track your business revenues and expenses separately
1:51 → Tip 2 – Keep the books up to date
4:20 → Tip 3 – Keep your files organised
6:12 → Tip 4 – Maximise your business tax deductions
8:18 → Tip 5 – Hire an accountant to file your taxes
11:01 → Outro
A sole proprietorship in Malaysia makes no difference between the natural person who owns it and the business. Sole proprietorships are pass-through entities; all profits and losses go directly to the business owner. Thereby, no separate tax return file is needed. Sole proprietorships in Malaysia are charged the income tax on a gradual scale applied to the individual income (from 2% to 30%).
A sole trader has to submit a special form designed for this type of business entity, Form B, and according to Lembaga Hasil Dalam Negeri Malaysia (LHDN), the due date for submission of Form B for Year of Assessment 2021 is 30 June 2022.
Sole traders in Malaysia must pay attention to the accounting-related aspects of their firms. All the receipts, profit and loss accounts, the balance sheet, business records, and expenses must be kept by sole traders for accounting and auditing purposes for at least 7 years.
Any business, regardless of industry, incurs a wide range of expenses. From starting a business to maintaining it, various expenses keep the operation running smoothly. However, many expenses are deductible and can lower tax liabilities.
For home-based businesses, owners can include some expenses on insurance, property taxes, rent or mortgage, electricity, and maintenance. However, business owners need to keep in mind that all expenses incurred within a fiscal year should be claimed against the income generated in that same year. Though, note that not all expenses are tax deductible; some may only be partially deductible.
One important thing to remember is to always maintain records of all expenses, whether they are personal or business-related. You can then go back to all the receipts or invoices and ask your accountant which expenses are tax deductible.
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Disclaimer: The content on this channel is for educational purposes only and merely cites my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary.
